TMI Blog2013 (12) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... no adverse comments as regards the purchases from the consumption disclosed - The addition was deleted by CIT(A) as well as Tribunal. Addition on account of value of scrap recorded in books - Held that:- The assessee has not maintained any details of scrap and its value - The availability of the scrap was not denied - The assessee has regularly been following the particular method of accounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being assessed in the status of Company (Public Limited). The method of accounting noted in the assessment order is mercantile. While making the assessment, on 14.03.1980, the AO made certain additions, which were deleted by the first appellate authority. In the second appeal, filed by the Department, the Tribunal vide its order dated 21.12.1987 uphold the order passed by the first appellate auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eved, the present reference application has been moved by the Department. Neither anybody appeared on behalf of the Department nor on behalf of the assessee. Being an old reference, we decided the present reference on the basis of the material available on record. Regarding the first proposed question, it appears that the AO has made the additions of Rs.2,00,000/- on account of unverified stoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- for the value of the scrap, which resulted from this massive repairs of overhead high tension wires copper wires, poles and mostly parts made of copper and brass. The addition was made on estimate basis. The CIT(A) has deleted the addition by observing that the availability of the scrap not denied. The dispute is only regarding the accounting. Since the assessee has regularly been following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.Bharat Hari Singhania vs. CWT 1994 suppl.(3) SCC 46; 6.CIT vs. Greenwood Corp. (2011) 7 SCC 69; and 7.Brij Lal vs. CIT (2011) 1 SCC 1. In view of well settled legal position, we are of the opinion that no question of law is emerging from both the proposed questions by the Department. So, we reject the reference. Order passed by the Tribunal in reference application dated 26.06.1989 is he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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